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Documentation Index

Fetch the complete documentation index at: https://v2-docs.exponent.finance/llms.txt

Use this file to discover all available pages before exploring further.

Exponent Core splits onchain yield asset into a Principal Token (PT) and a Yield Token (YT), enabling fixed-rate and leveraged yield strategies.

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How It Works

When a user deposits SY (Standardized Yield Token), the protocol strips it into two tokens:
  • PT (Principal Token): Redeemable 1:1 for the underlying asset at maturity
  • YT (Yield Token): Represents the yield component. To earn yield, YT must be deposited into a yield position — simply holding YT in your wallet does not accrue interest.
The number of PT and YT minted depends on the current SY exchange rate rr: 
Strip:   1 SY   →   r × PT  +  r × YT
Merge:   r × PT  +  r × YT  →  1 SY
For example, if the SY exchange rate is 1.05, depositing 100 SY produces 105 PT and 105 YT. At maturity: 
PT  →  Redeem for underlying asset (1:1)
YT  →  Collect remaining accrued yield, then expires
YT does not earn yield just by sitting in your wallet. You must deposit it into a YieldTokenPosition account so the protocol can track your balance and the exchange rate at entry. See the SDK Quickstart for the full deposit → stage → collect workflow.

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Strategies

  • Fixed rate: Buying PT at a discount locks in a guaranteed return. See PT: Principal Token for details.
  • Leveraged yield: YT provides amplified exposure to variable yield. See YT: Yield Token for details.
  • Pricing math: For the formulas behind PT/YT pricing, implied APY, and fee decay, see Pricing & Math.

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SDK Classes

The Core SDK exposes two main classes:
  • Vault — Loads market state and provides core instructions (strip, merge, initialize positions, collect interest)
  • YtPosition — Manages a user’s yield position (deposit/withdraw YT, stage yield, collect interest and emissions)

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Getting Started

Exponent Core SDK

Get started with the Exponent Core SDK and learn yield stripping operations.

Technical Concepts

Exponent Core architecture from stripping vaults, yield positions, collection.

TypeScript Instructions

TypeScript SDK instruction functions for Exponent Core.

Read Functions

Overview of Exponent Core read functions.